Choir-Sainshand transmission line

Location:

Mongolia

Project number:

51505

Business sector:

Energy

Notice type:

State

Environmental category:

A

Approval date:

21 Sep 2022

Status:

Approved

PSD disclosed:

18 May 2022

Project Description

The provision of a sovereign loan of up to US$ 70.4 million for the construction of the 220 km Choir - Sainshand 220 kV transmission line, the construction of the 220/110/35 kV substation at Sainshand and the extension of the 220/110/35 kV kV Choir substation. The line will represent a significant upgrade to the existing old 110kv line which suffers high levels of losses and is not sufficient to supply the growing energy demand of the region.

Project Objectives

The objective is to upgrade a critical component of the electricity transmission infrastructure, reducing the amount of energy not serviced (ENS) and displacing a significant volume of CO2 emissions by facilitating the integration of renewable energy and reducing transmission losses. 

Transition Impact

ETI score: 67

The Project will contribute to the Green quality by displacing an estimated 140 thousand tCO2/year bthrough reduction of the electricity transmission losses and increased absorption of renewable energy from the nearby renewable power plants.

In addition to improving the electricity connection of an underserved region of the country, the Project will also contribute to the Inclusion quality by promoting access to market-relevant skills and employment opportunities for young women and men in the energy sector. It will achieve this by supporting the introduction of a new, replicable and nationally accredited training programme for young electric engineers in partnership with the local technical university. 

Client Information

MONGOLIA SOVEREIGN

EBRD Finance Summary

USD 70,400,000.00

Total Project Cost

USD 75,500,000.00

Additionality

The EBRD offers a long tenor structure suitable for the long-term nature of the Project that is not available in the market from commercial sources. Additionally, the EBRD will provide the expertise on the best international procurement standards and the Project will adhere to the EBRD's procurement policies and rules.

Environmental and Social Summary

Categorized A (ESP 2014). The construction of high voltage overhead transmission line is (OHTL) is associated with a number of potential E&S impacts, which were assessed through a comprehensive Environmental and Social Due Diligence (ESDD). An independent consultant was retained by EBRD to perform a full Environmental and Social Impact Assessment (ESIA) in line with the EBRD's ESP and EU EIA Directive, followed by a number of the public consultations. The Project was subject to the National Environmental Impact Assessment (OVOS), and received the required regulatory approval. The ESDD confirmed that the Project is structured to comply with the Bank's Performance Requirements (PRs). The ESIA was disclosed on the EBRD's and Client's web-site on June 29, 2021 for 120 days' period. The National Detailed Environmental Impact Assessment (DEIA) has been prepared and received approval by the Mongolian Ministry of Environment and Tourism in July 2021.

The Project includes construction of  220 km double circuit 220 kV overhead transmission line between Choir and Sainshand; the construction of a new 220/110/35 kV substation in Sainshand and extension of 220 kV Choir substation.  The Project will require permanent land take for the construction of the new substation at Sainshand and for construction of the tower foundations for the OHTL along the Project route.

The line route has been selected to limit impacts and goes primarily through a mainly unpopulated area with a small section traversing agricultural lands, and has been selected based on the analysis of three alternatives. No resettlement will be required for the Project and limited economic displacement impacts and livelihood restoration activities will be addressed based on the Land Acquisition and Livelihood Restoration Action Plan developed for the Project. The site for the Sainshand substation is currently unused and there are no businesses or residential properties and therefore the substation will not have an impact on existing land uses or result in any physical or economic displacement. The substation at Choir is already existing and is not associated with physical or economic displacement. The OHTL route between Choir and Sainshand substations passes predominately in open countryside, across pastureland. The land across which the OHTL passes is, effectively, all state-owned land. There are no herder household structures, temporary or permanent. No physical displacement of winter camps is therefore anticipated along the OHTL route. Construction will result in a temporary loss of access to pastureland within the temporary working footprint of the Project OHTL route, which could affect herders. If any physical or economic displacement will occur, a Resettlement Action Plan and/or Livelihood Restoration Plan will be prepared and  implemented, based on the Land Acquisition and Livelihood Restoration Framework developed for the Project and disclosed alongside ESIA.

Biodiversity aspects of the line construction and operation were assessed by independent expects, with particular focus on avifauna. Two seasons of bird surveys were undertaken to capture spring-autumn 2021 migratory periods. The route does not traverse any internationally protected area, with the closest IBA being at 10 km from the line. Biodiversity surveys indicated that vegetation coverage was generally low and no International Union of Conservation of Nature (IUCN) Red Listed threatened plants species were observed however, two plant species listed as threatened in the Mongolian Red List, were recorded. The majority of the bird species recorded during the spring bird survey have low conservation priorities, however, two threatened category birds were identified. For those sections where ornithological assessment established the potential risks of bird collision with the line the protection measures (such as bird markers and diverters) were proposed and will be incorporated into the final design. The periodic bird monitoring will continue post construction and, if required, additional measures will be implemented. 

The main E&S risk associated with the construction and installation of the OHL are associated mainly with worker Occupational Health and Safety, contractor and supply chain management and ensuring the technology and designs meet good industry practices and best available techniques. 

The physical impacts, notably on human receptors, such as noise, dust, electromagnetic fields (EMF), visual were found to be negligible due to line location in the mainly uninhabited area and away from sensitive receptor.

Based on the ESDD an Environmental and Social Action Plan (ESAP) has been developed to structure the Project in line with the EBRD's PRs and address institutional strengthening issues as required. The ESAP includes, inter alia, enhancement of the corporate Environmental, Health & Safety and Social Management Systems, installation of the bird protection devices and seasonal bird monitoring, supply chain management and construction safety, implementation of the Stakeholder Engagement and grievance tools, implementation of the Land Acquisition procedures compliant with Bank's policy and others.

As part of the ESIA disclosure package Non-Technical Summary (NTS) in English/Mongolian, Stakeholders Engagement Plan (SEP), Environmental and Social Management and Monitoring Plan (ESMMP) have been developed and published https://www.ebrd.com/work-with-us/projects/esia/choir-sainshand-transmission-line.html

The Bank will monitor the Project implementation and assist with institutional capacity building.

Technical Cooperation and Grant Financing

Pre-signing technical cooperation

- Consultancy support for update of the feasibility study and technical review, funded by the Japan - EBRD Cooperation Fund.

- Consultancy support for environmental and social due diligence, funded by the EBRD Shareholder Special Fund (SSF).

- Consultancy support for national environmental impact assessment, funded by the EBRD Shareholder Special Fund (SSF).

- Consultancy support for project supervision engineer services, to be funding by the EBRD Shareholder Special Fund (SSF) or international donor.

- A training programme for young engineers under the Gender and Inclusion TC Framework, to be funded by the Japan - EBRD Cooperation Fund.

Company Contact Information

Ms. Dulmaa Dashdavaa
dulmaa@energy.gov.mn
+97688119798
Government building XIV, Chingis avenue, Khoroo – 3, Khan-Uul district, 17060 Ulaanbaatar, Mongolia

PSD last updated

04 Oct 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

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Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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